Editor’s observe: This story has been up to date with extra info from a submitting with the Securities and Alternate Fee.
Pear Therapeutics, maker of prescription digital therapeutics, introduced as we speak that it has filed for Chapter 11 chapter and is in search of a sale of its enterprise or belongings.
The corporate will proceed its scaled-down operations throughout Chapter 11 because it seeks a sale, and Pear will use its obtainable money to fund its operations and prices post-petition.
The Boston-based firm’s CEO Corey McCann referenced the filing on LinkedIn, stating, “At this time is a tough day for Pear Therapeutics. We introduced that Pear voluntarily filed for Chapter 11 and can search to promote belongings by way of a gross sales course of. We additionally introduced a discount in power, together with me. That is definitely not the result I envisioned once I based Pear in 2013.”
In a submitting with the Securities and Exchange Commission, Pear mentioned it could lay off roughly 170 workers, practically its complete workforce. The corporate would preserve a transition staff of about 15 workers to proceed operations in reference to Chapter 11.
McCann stepped down as the corporate’s CEO and president. In response to the submitting, he’ll proceed to function a board member and supply consulting companies by way of the deliberate sale course of. Christopher D.T. Guiffre, Pear’s chief working officer and chief monetary officer, will function the corporate’s govt officer.
Through LinkedIn, McCann thanked the departing Pear workers and highlighted their accomplishment in bringing a number of the first prescription digital therapeutics to market. He famous market situations triggered the corporate and different growth-stage companies to face challenges during the last two years.
“This is to the way forward for digital drugs that we have labored so arduous to create,” McCann mentioned.
THE LARGER TREND
Final month, Pear announced it was exploring “strategic alternatives,” together with a attainable firm sale, merger or acquisition. It employed a monetary advisor to look into actions that would “maximize shareholder worth,” together with a possible sale, M&A, divestiture of belongings, licensing or different strategic transactions.
With out a transaction, Pear mentioned the corporate would wish to reorganize, liquidate or pursue different sorts of restructuring. In a filing with the Securities and Exchange Commission, Pear withdrew its income and working steerage for fiscal 2022 and 2023. It didn’t maintain a fourth quarter and full-year earnings name.
The publicly-traded firm wasn’t resistant to the numerous layoffs seen all through the digital well being sector. In November, Pear mentioned it could reduce its workforce by about 59 employees, or round 22% of the corporate. In July, it let go of approximately 25 employees, making up about 9% of its workforce.
Nonetheless, final 12 months the corporate established quite a few partnerships to broaden entry to its reSET and reSET-O choices geared toward treating substance use and opioid use dysfunction, together with collaborating with the Wisconsin Department of Health Services, Spero Health, and the California Division of Healthcare Companies. The corporate additionally introduced plans to supply its prescription digital therapeutics by way of telehealth providers.
Dr. Cecil Lynch affords extra particulars through the HIMSS23 session “How the Human Genome is Altering Precision Medication.” It’s scheduled for Wednesday, April 19 at 11:30 a.m. – 12:30 p.m. CT at South Constructing, Stage 4, room S406 A.
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